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What would happen if you put six people in a dark room with an elephant, a rhino and a giant squid and gave them 30 seconds to describe what they discovered? Odds are, the survivors would give widely varying accounts, which may explain those studies showing you are both overpaid and underpaid, Senior Correspondent Mike Causey says.

If in any job, the federal employee can quit and get more money (albeit with different perqs and perhaps more headaches) elsewhere, then he isn't overpaid. Anyone who keeps asking: "why do I do this when I can make all that extra money elsewhere?" is clearly not overpaid.
If on the otherhand, if leaving federal employment would result in a pay cut, and new hires in that job are arriving happy about their increased incomes, we are probably overpaid.

One of the major impediments to changing jobs is our pension. With only a few years to go, I probably wouldn't say anything if they assigned me to be a rower on a slave galley. I'm stuck with being a fed. Even those on the TSP give up a lot to move to the private sector.
A better measure is how many feds retire when they are eligible vs stay on to collect our wonderful, super-high pay.

Just from a novice perspective in looking at a job to job comparison, Feds do not make anywhere close to the private sector. Look at, in general, a Contracts Specialist Job, lets say GS 13 Step 1 in the Washington, DC area. It is $89,033.00 annually. Someone in that same job, working for lets say a local government contractor (NG, Lockheed, etc) makes, on average, $115,000.00. Annually, that is $25,967.00 different. Not to mention Fed's are getting no pay raises, while those in private industry continue to get them. AND, due to OPM's mandate on only allowing 1% monetary awards for any individual over an entire year, while private industry can and does give bonuses for jobs or projects well done. So saying Feds are overpaid compared to private sector is a JOKE!!!! That is, when you compare apples to apples and not Federal Job to Wal Mart employees.

Studies of compensation need to take into account the generally higher education level, obtaining and maintaining clearances (which requires discipline, limited lifestyle, and restrictions on behavior). The Federal government appears to have higher standards for education professional and personal behavior. When considering those requirements, Federal government employees appear grossly underpaid.
The limited earning potential needs to be addressed as well.

In my job, I was lured here with a carrot for higher pay which probably matches the 58% higher study from CATO, however, health care deductibles are much worse than my former professional job and they cover no vision at all and no dental to speak of. I have to purchase extra insurance for dental and vision. I get socked in the gut every January and February with large co-pays/deductibles. Employees continually have to weigh whether working in the government is beneficial to them, but as they get older opportunity dries up due to age discrimination. -- Current plans are to dismantle the federal workforce dollar by dollar. (1) Implement GEAR - the new "pay for performance" plan (remember under NSPS a starting salary was 20K). (2) Do not extend the payroll tax break (3) Pay more into retirement (4) Pay more into healthcare (5) Do not match up to a 5% contribution into the TSP - but only match up to 2 or 3 percent (and then, later, none). (6) Implement a new retirement plan that even pays out less than FERS (remember one leg of FERS is 20% of your high three). (7) Change the high three to "high five." -- All these measures would pass easily in a GOP controlled government and they have all had attempted legislation or serious attempts to pass them already.

Well since the slave state of Kuwait pays. Someone made the formal decision to let feds in Kuwait eat for free. Nevermind E7 and above active duty still have to pay. Heck that added $100 a PP to my pocket a couple months ago. But PLEASE never bring back anything that even smells like pay for performance. NSPS was a crock. There are 1000's of us that are still fighting for the lost pay we never got as valued performers, even exceeding step 10 of grades because special rates were not applied. I lost $24,000 and counting and nine years of high grade when they put me back in GS as a step 9, even though I held step 10 three years before NSPS. Google federalsoup and read some of those blogs. I do agree that in todays world some very qualifed people will take a GS9 job in the war. Most contracts have low balled the bidding to keep the CEO fed and watered so even contractors here in Kuwait that were making $125,000 4 years ago are now makeing half that... If the world survives the EU mess and congress ends this cliff thing. my money is on private pay goes through the roof again. while feds still take a job in 130 degree blowing and drifing dirt of Kuwait for free grilled cheese for lunch...